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tv   FOX Business After the Bell  FOX Business  November 12, 2012 4:00pm-5:00pm EST

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sandra: nowhere near the $700 higher. david: the bell ringing on wall street, look at how the indices are shaping up into a very low volume today, but interesting stock moves for individual stocks. the dow jones and s&p 500 both in the green barely so, nasdaq and russell off again just fractionally. sandra: commodities a big mover today. soybeans moving to a five-month low, seems like there is plentiful supply of the crop and south america with great weather. david: look at some of the homebuilder names amongst the worst performers again, all this enthusiasm about homebuilding that we saw in the second and third quarter kind of being left out of the balloon particularly stocks, looking at the 8% loss
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come to thin you think was goino happen. it had a tremendous buildup, so that is still in the green for the year, but a big drop-off on this particular day. a top strategist who says the gold craze is just getting started and if you don't play it, you shouldn't be in it. sandra: getting back into the workforce, a veteran himself joins us with a look at the extraordinary program. david: yesterday was veterans day. now what drove the market with the "data download." a mixed day on wall street as stocks struggled for some sort of direction. up and down following the worst week for the market in months. the nasdaq closing i in the red, nostrils and telecom were the top performers while utilities and technology stocks lagged a
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little bit. copper rebounded from a two-month low after greece lawmakers gave the euro a boost against the dollar. closing 7638 per ton, posting a gain after five straight weeks of losses. the euro holding two-month lows versus the dollar uncertainty, weighing on the currency. hit an intraday low of $1.27 down nearly 2% against the greenback so far this month. sandra: jerry leavy to tell us what another 4% dip could be on the way and the biggest money makers, why outside the united states. very, what is the deal here? this huge selloff last week and yet before the election everybody said that the elections behind us, skip third-quarter earnings season, we will have certainty in the
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market and it will rally, it is just not happening. >> we are treading water. what is behind all this is traders are coming to the terms with the fact a lot of things have to go right for the market to make the next move upward. that doesn't happen, we will easily see a 5% correction. we are worried about greece and spain. coming through with money that they would have to come through with and the fiscal cliff. let's be clear, not everybody has to be resolved by the end of december but will a compromise takes place to the extent the market would like that and the market will make the next leg move upwards? david: capital gains taxes now under the clinton administration when we lowered the capital gains rate tax we headed home in the market, is the converse true? could that market take a real hit if the gains rate goes up? >> we will see a 5% correction
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if that does go through. a 5% correction. however the market's aren't praising it in right now, the market doesn't think that will happen. david: let me follow up on that. if they think the gains rate will go up as of january 1, wouldn't they work hard to get the capital gains into selloff before that happens? >> yes, they would. again, that is okay, david. that is the whole thing i'm trying to say, the market is not expecting that to happen. do the market get caught unaware? absolutely. the market as is a collective f do not think obama can hit the constructive policy through congress and through the senate. sandra: one other thing by the way, larry, everybody said the one thing that would be good about president obama's reelection for these markets are
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the continued dovish tone from the fed that would be expected with his reelection, why aren't we rallying on the fact we will probably get another round of money printing to help out the market? >> you have to also look at the business cycle we are in. we are treading water. numbers are better than they are bad, but the bigger story is we are not throwing fast enough to keep the market going higher. right now we're waiting for two or three good things to happen to take the next leg up. we are treading water, the water is very vulnerable for a down move is one of those things doesn't work out correctly. sandra: looks like we are in a wait-and-see mode. david: let's bring in the market panel. capital management ceo and chief investment officer. let me go to you first. you say this kind of a romney premium that had been built in the market.
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the idea the last couple of weeks of the campaign was that romney would win and tax rates would not go up. is that premium going to be sold out of the market? >> i looked at this, i looked back and republicans started gaining steam and since romney himself started gaining steam in the polls a look of a coalition between that and what the market was doing and for me i saw it at least four to 5% of built-in romney fluffed, if you will, a republican fluffed and that is a good thing, right? other beneficial pieces to happen with the market. the bottom line is yes, it is coming out. now we have new uncertainties to deal with. not only the benefits of perhaps dodd-frank reversal and other tax rates, we will get tax increase on dividend. i think we do see at least another 4% drawdown.
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the probability doesn't lie in taxation, but something is going to come up the fiscal cliff, they will have to be a compromise and the compromise will include taking something away from wall street. that is sort of my basic if you will. sandra: whil well you are not bullish, in the short-term things are a bit oversold after a big selloff last week and buying opportunity here? >> a lot of the premium that was built in there with the hope that romney was going to get the nod came out of the market. i would not buy the index as a whole, but the impending capital gains hikes in january that he
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can step into right now, companies like apple and companies like disney right now. if you have not owned those two-out performers this time of year, this is a great opportunity for investors looking to take on a new position. david: let me follow up with that if i can, particularly with apple. is it conceivable that stocks could go down further? >> anything is conceivable that if you look on a forward earnings basis and some of the opportunity they have tapped into the emerging market consumer long-term which they haven't even scratched the surface of, you're buying a stock trading less than the market multiple. if you're looking for one to two weeks trade, now may not be the time to get into apple but if you are longer-term investor, that is a pretty good entry point. sandra: you have to do something to make money, so where do you see opportunities even though
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you're calling for a fresh and overall market? >> there are bits that you can move to. out of the dividend players, and the date that people were thinking about going into the election was what is going to do well? one place is in retail. by the way on thursday target and sears, none of these companies are counted in the retail sales figures. right now consumer confidence is high, personal spending is up. they are not tuned in like us, they're off doing their thing, but for now in terms of spending, don't give a word about the fiscal cliff until right on their doorstep. retail will benefit.
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david: key inflation stats coming up this week, how might thht affect your play for commodities? >> that is everything. in the near term i see deflation after being part of what is happening. look at corn and wheat, continuing to move lower, and that is good for consumers. that will bring the price of goods and services down in the near term. i think right now deflation, make sure the numbers are not going to be hot, which i don't think they will be. some of those retailers in specific spots can rally. sandra: so unbelievable to see corn sitting pretty. unbelievable. where should you put your money to work? you say this not here at home, it is by the u.s. >> mention a couple of stocks,
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disney and apple. no reason to pick through the rubble. the s&p 500 stocks are fairly priced. look at the u.s. as a whole, are looking to eke out 2.5% gdp. if you look at the emerging market for the last year and a half they have significantly underperformed the s&p 500, valuation is cheaper than the s&p 500 and if you look at a place like india, that is investors dream. the median age over 25 compared to 37, 38 for the u.s. growth rate coming in around 7% over there, the emerging middle class going from 100 million to 600 million by 2025. just investing in $2 billion in united spirits, that is a consumer you want to tap into, plenty of opportunity for long-term growth, much cheaper multiple than what you are finding on the shore.
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david: ticker symbols, epi, and china broad-based. it is great to see you. very good advice, thank you very much. >> thank you both. sandra: would have a top strategist that says the gold craze is on the way and the best way to play it is not by buying gold itself. a different strategy. david: an increase in tax rates next year prompting some private companies to call it quits to sell out. says he took his chips off the table before the tax hike hits. sandra: and on one in oceanside community devastated with thousands still without power and a place to live. we are live on scene. [ male announcer ] this is steve.
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ask your doctor out spiriva. david: s&p futures are closing right now.
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let's go to the cme to see how things are shaping up for tomorrow. >> a lot of treading water. numbers coming out toward the end of the week. the fiscal cliff is the overhang but beyond that lets put it into perspective, the global market rallied 13% this year, 2.5% gdp. low multiples and piles of cash. i expect that to continue long-term. david: thank you, good to see you. sandra: shares of one office supply retailer having a tough time. nicole. nicole: interesting look at officemax. which will make it easiest to the consumer. it turns out officemax is debuting free same-day store
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pickup of online orders and there is no minimum purchase this is their way to say go online, pick out anything you want from officemax, and then pick what store you want and when you arrive it will be back and ready to go for you. we have heard other retailers say they are happy to match. there is black friday. target doing the same thing. all of these retailers are going to be competing for your business. thank you to all of our veterans. david: a special segment on that coming up. appreciate it. gold futures soaring posting the best weekly gain since january but our next guest says were only a third of the way through the current gold top. sandra: joining us now.
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what exactly do you mean by this gold craze that you are calling for? >> i think gold will be in the next quarter with the fiscal cliff counting a lot of uncertainty and concern right now. we will see a bunch of heroes created in the senate and the president's office, a lot of people pointing to distinguish themselves getting us by this fiscal cliff and investors will flood into the market with a huge sigh of relief. what we saw the last time we had the fiscal cliff about a year and a quarter ago. we had that feeling fro, to be repeating a few months when that was negotiated we raised the debt ceiling, the gold price responded with a 30% rise and we think we will see that again. david: i hope you're right, they come together, but why if you
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are right we have about 30% more move to the upside with gold, why has it been down the last couple of days? it was a slow trading day, but down a couple of dollars. >> that is right, it went down a little bit, seems to be trading rapidly on events from the european crisis and now people are waiting for the open market banking committee. they would seize assets purchase, that could have been negative on gold but the big picture is still positive on hard assets for gold. inflation rate well ahead of interest rates, target rate 025 basis points underlining the sound investment in hard assets such as gold and the equities have underperformed the gold mining equities were very bullish on those because the prices have gone up making the disconnect even greater. particular gold equities, we
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will see a dramatic increase. sandra: there is an investor that everybody knows, jim rogers, who will severely disagree to say if you believe the price of gold will go higher, by gold, don't mess around with a company. why not just by gold itself. but why the equities, why the stock? >> that is a really good question, for risk averse investors the metal probably is the way to go. if you look at the actual numbers, gold equities tend to perform. if you think the gold price will go up 1%, it tends to go up about 2% because they have operative lending. $100 increase in the price of gold is significant if you only take out the operating expense.
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burning response is responding tremendously. a big leverage in the gold market, high expenses, but they have a very prominent positive in west africa, very lucrative if gold prices continue to stay these levels can even go higher. david: assuming your scenario is right and congress comes to some sort of deal on the fiscal cliff issue, one year from today what will the price of an ounce of gold be? >> are looking for $1900 by the year-end that might be a little conservative at this point. we think investors will get back into gold and stay there. we will take it. shdavid: thank you very much. sandra: looming tax hikes motivating business owners across the country to put themselves on the market.
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saying profit wasn't sustainable pushing him to put up for sale sign on his door. david: tens of thousands without power, hundreds of homes condemned. many people with nowhere to turn at all. you probably saw this on "60 minutes." more details in just a moment. what's next?
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sandra: a numb per of residents in parts of queens,
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new york, an area averaged by flooding and fires by hurricane sandy, they are learning they may not have power until after thanksgiving. david: this is dire situation and getting worse. forcing new york city's mayor to call upon the national guard for help. liz macdonald is joining us live from belle harbor all day with the very latest. this is an area hit very hard. liz, what is the latest? >> that's right, david and sandra. the national guard was taking along with paramedics doing door-to-door search and rescue operation to pull people out of theirs homes because the temperature is dropping. we see st. francis of sale and church grammar school. up to 10,000 people a day are getting relief from this volunteer grassroots disaster relief operation. they're getting food and coats. i seen children without shoes on. a guy showed up with his two yearly daughter with bronchitis, he didn't want to go back to his house
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without power and heat. we're seeing lines continue throughout the day. i have got a treat for you, david, and i got a treat for you, sandy. david's son is in the marines. sandra i think your grandfather is an admiral. we have a operation called team rubicon, they basically organized, they're the first responder group that organized first-responders. ford and pete, tell us more about team rubicon. >> team rubicon a organization formed by two marines who designed the skills they learned in combat is applicable in a dissasser zone. they jumped on social media and put ad hoc team together essentially of nell professionals and military professionals. they create ad new paradigm. >> this is a community of firemen and cops who basically worked on 9/11.
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you work for a first responder organization to organize first-responders, right, pete. >> we organize people who want to help and come out and volunteer. we channel volunteers and pair them with tools and leadership they need to do the job. >> you both served in iraq. >> that's right. >> sandra and david, i want to see the basically burned out area next to the church. this used to be three homes here that got burned to the ground and also their cars. what team rubicon does, guys, they go into the houses, that can't be ha bitable and you guys dot salvage operation. you can't a salvage this, right? tell us what you do for houses that need cleaning up. >> we like to prioritize the houses. we want to insure people can return to the homes or can't go back to the home to shore them up and safeguard them. >> you will be here throughout the operation.
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>> that's correct. i'm based in new york city. we're here as long as it takes to provide services people need out here. >> there is a let of stories but team rubicon is positive story. there is not all negatives. there is so much good in this organization and also throughout the community of people just stepping into the breach, not waiting for the government to come in, but stepping in, when the government's not there, to help out. i will give it back to you. david: that is exactly the point. bad news people are in desperate need. good news a lot of private individuals, just volunteers going in there and they have the good marines. >> guys like this. david: separate the wheat from the chaff in terms of what is needed. sandra: great reporting on your part. >> thank you, sandra. >> one financial firm is lending a hiring hand to u.s. veterans, training u.s. troops who are facing a very tough jobs market. the ceo of drexel hamilton joining us with a look at their battle plan to help veterans get back to work. sandra: forget coupons. one struggling department store is depending on
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buttons this holiday season. huh? will it be enough to entice shoppers to the stores? that is ahead in today's speed read. music is a universal language.
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sandra: time for a quick speed read of some of the day's other headlines, five stories one minute. first up, sherwin-williams agreeing to buy mexico's largest paint maker. $3.4 billion deal is the biggest u.s. takeover in mexico since 2004. jcpenney plans to give out more than 80 million gift buttons as part of a new holiday promotion. each trinket will have a code on the back that can be used on the retailer's website to win prizes. targets moves up its black friday start to 9:00 p.m. on thanksgiving day. this will be the earliest black friday opening for thh retailer's history. they plan to offer door buster deals starting at
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4:00 a.m. on black friday. the u.s. international energy agency says the u.s. will be the top oil producer by 2017. the u.s. is in third place behind russia and saudi arabia. hostess brands warning it may permanently close some of its plants if union members continue to strike. the action represents 5,000 hostess workers. that is today's david, speed read [buzzer] david: gooo work. hostess doesn't have twinkies anymore, does it? sandra: that doesn't matter. david: thank you, sandy. george lucaas is sell to the film companying to $4 billion this year may save him tens of millions of dollars of capital-gains taxes if he completes the deal before rates go up january 1st. while on a much smaller scale there are many more deals being struck before the clock strikes on a 15% capital gains rate. one of the deals is made by burt wolf whose okay again business was in his family
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since 1936 but he sold before the higher taxes kicked in. burt joins us now. you're thinking like a billionaire because presumably why george lucas wants to sell, right? >> if you say so. david: why are you selling? what is the specific reason you're selling now? the family has been in business for three or four generations. why sell now? >> well, we've had, i have had several years of really good business. the energy sector in texas has been really, really booming. my son's bret and zachary, the fourth generation are not coming into the business. and looking towards next year with the tax situation and the medical taxes on top of the capital games and ordinary income and then, with obama medical care coming down the road and the increase in regulation, it was just time for me to sell my business. david: tell us how burdensome the increase in
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regulations has been for you. >> well, i mean, this is just my opinion but i feel like since, the last four years, that there has been such a increase of government workers, i think there is also been an increase of government employees in the regulation area, and, they seem to come more often and stay longer. and, i felt like the last few years that i could have been in any business because all i do is work on compliance and regulations and safety and fill out, work with my safety people and you're juggling a lot of balls to satisfy a lot of regulators and i felt like, i feel like i'm doing more of that than running my business. david: is that true? do you think you're spending more time on compliance and regulations than running your own business? >> well, i believe that. when you couple that with insurance and trucking are and licensing, medical
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insurance, businessman today is, does not have a whole lot of time to run his business. that is all he seems to be doing is juggling the all the different things i just brought up. david: oxygen is used by a lot of hospitals. i guess hospitals are some of your clients. because of that because you would be hit by the obamacare tax on suppliers of medical equipment? >> well, i don't think that so much affects me. i'm in the compressed gas business. we sell medical oxygen, bulk oxygen, transports and cylinders you refer to askance but i'm not aware of that tax. david: okay. so you wouldn't be directly hit by that but certainly with regard to your employees you would be hit? >> absolutely. before this even happened over the last two or three years my medical premiums for myself and my employees go up about 25, 30% a year. this is before obamacare even kicked in. it is scary. david: do you know of others, other small business folks like yourself who are in the
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same position just are tired of all the regulations and extra taxes what is coming on line with obamacare and they want to get out? >> i don't know many myself. i think if you talk to any transactional type attorneys or investment bankers you see there is rush of many companies to try to sell the business before the end of the year. david: finally, burt, why is it your kids don't want to get into the business? >> well, i'm in some other businesses that i have kind of encouraged them to go into and, and they really want to do their own thing. so i'm very supportive of that. david: good for you. you're a support i have dad particularly. >> okay. david: for your kids not to join a company that has been around for three generations that must be tough. burt, thanks for coming in, appreciate it. >> thank you very much. david: burt wolf from acetylene oxygen which has been bought by another company. thank you, burt. sandy, over to you. sandra: veterans helping veterans.
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drexel financial developed a program to help veterans find a job in the financial industry. ceo veteran himself. he had a license to kill this weekend and he killed at the box-office. james bond's "skyfall" could be the best grossing bond film ever? how could you trade it? dennis kneale has the story. ally bank. why they have a raise your rate cd. tonight our guest, thomas sargent. nobel laureate in economics, and one of the most cited economists in the world. professor rgent, can you tell me what cd rates will be in two no.rs? if he can't, no one can. that's why ally has a raise your rate cd. ally bank. your money needs an ally. can i still ship a gift in time r cistmas?
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yeah, sure you can. great. where's your gift? uh... whew. [ male announcer ] break from the holiday stress. ship fedex express by december 22nd for christmas delivery.
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at legalzm, we've created a better place to handle your legal needs. maybe you have questions abo incorporating a business you'd like to start. or qutions about protecting your family with a will or living trust. and you'd like to find the right attorney to help guide u along, answer any questions and offer advice. with an "arating from the better business bureau legalzoom helps you get personalized and affordable legal protection. in most states, a legal plan attorney is available with every personalized document to answer any questions. get started at legalzoom.com today. and now you're protected. >> i'm robert gray with your fox business brief. microsoft has a record-setting halo effect for its xbox videogame console. the halo 4 game wracked up $220 million in global sales in just 24 hours after launching on tuesday. the game, which, is on track now to become the biggest launch for the decades old halo franchise in its history. airlines in the u.s. may face the most serious pilot shortage since the 1960s.
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that is according to "the wall street journal.". new federal mandates and a wave of pilots about to hit retirement age may create a huge problem in the industry. folks looking to help victims of hurricane sandy can literally donate their time. the irs has reactivated a benefit allowing workers at participating firms to donate unused vacation days. the companies will then in turn donate the time and pay to a tax-exempt group. that is the latest from fox business.
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sandra: after jumping to 10% just two years ago the unemployment rate for veterans has steadily improved, dropping to nearly 6% last month. david: one reason things have improved because of folks like our next guest who is working hard to make sure returning veterans are valued as they should be. colin quinn is cfo of drexel hamilton which is a full service broker-dealer founded on the principle of offering disabled vet as
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career in financial services. good to see you. we should mention you're the eighth grade of something called wall street warfighters. >> yes, sir, which is part of this whole thing. explain. >> our founder started both organizations to address the unemployment epidemic facing veterans. it does three things, trains, licenses and places disabled veterans in the industry. i came to the broker-dealer, drexel hamilton, boutique broker-dealer investment bank because i believe the country has the attention span of my 6 years old. in three years they will stop caring about disabled veterans, incumbent upon me and industry veterans we partner with to build a business that stands as a model and excellence and that is why we strive to achieve. sandra: what are the some of the specific attributes you recognize in veterans that make them great workers. >> that's a great question. you hear of work ethic and morality.
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i wholly reject those things because i went to civilian college, i somehow greater ability to lie or not work as hard. i do believe one thing is true. that is commitment to mission completion. if you serve in the military, especially if you're in a life-or-death situation you understand second place means you get to die for your country. as general mattis told me when i was in afghanistan, let them die for their country, right? our disabled veterans especially, worker organization have that mission completion. david: you were one of the first boots on the ground in 2001, right after the attack in afghanistan. you were at one of the guys who cleared the way for those special forces. all right, push comes to shove all comes down to performance. >> absolutely. david: how do these guys perform? after you train them and place them how do they perform? >> that is great. we demonstrated, this is the most important effect, impact that we can have, demonstrating to the rest of the industry that the disabled veterans are not just capable of competence but excellence.
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a friend of mind works in the organization, a gentleman of mind, sent along pictures, hoping people at home will see those. this is gentleman picked out by the taliban by name. jerry, he was so good what he did they put a bounty on his head. pictures --. >> wanted poster put up by the taliban to get this guy. >> that's correct. they did hit his vehicle. david: there it nice in hitting vehicle he suffered 60% of the his body in burns. lost the right side of his right hand. what have you done 63 times of meaning in your life? he had 63 surgeries. this gentleman in 2006, received a purple heart from, from president bush 43, right? sandra: go ahead. >> three weeks ago, four weeks ago he stood again in front of the president bush on his own two feet. standing on his own merit, giving up government subsidies to reenter the workforce and demonstrate to his three children and rest of the world that a disabled veteran falls off the bike
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to get back on. he is capable professional. works in the capital markets department. very proud to have him as friend. very proud to have him as a colleague. sandra: on the veterans day is there a message you could send out to small businesses or big businesses why they should follow your same gameplan? >> these last couple days are interesting. we get opportunity to reflect on veterans and people that serve and sacrifice so significantly. hopefully we spend a lot of time valuing the families who supported them and their support is so essential to their success on the battlefield. that's great. to anybody at home who has stood up for a veteran these last few days, clapped for a veteran, if you don't turn that sentiment into action, then you become a part of the problem. you've got to reach out and give a disabled veteran a chance. not as a charity case but as an individual who will earn their right to get your business. david: by the way you give out these military coins of the anybody who has spent any time in the military knows how the troops give out. here it nice we don't give
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them out to anybody, david. david: thank you very much. both sandy and i have one. sandra: thank you for your service. >> put this, if lands on tails side? >> no. if you bring it to a bar, you may, if you flip your coin and they don't have it, they may buy you lie is bas, never going tt let a veteran buy me a drink, that includes, cal, thank you very much. >> thank you very much. david: the latest 007 movie scored a record opening for bond and there may be a way you can make a profit off the victory at the box-office. we'll tell you how, straight ahead. sandra: so long kansas. dorothy's "wizard of oz" dress, found a new home. one bidder handed over lots of cash to buy a piece of hollywood history. we'll tell you how much the dress fetched when we go "off the desk" ahead on "after the bell."
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>> welcome back. i'm robert gray with breaking news. john mcafee, securities software pioneer is wanted for questioning by police in
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brazil, belize, in connection to the murder of an american expatriate there. this cording to belize police and news reports. they want to talk about the murder of gregory fall. he was an american killed over the weekend, this according to the belize national security ministry. they said it was to too early to call mr. mcafee as a suspect. but if his story does not add up he may be arrested and charged. the whereabouts are not known. he lives near mr. fall who was found dead with a gunshot wound in upper part of his head. mr. fall filed complaints about mr. mcafee and former security mogul that security guards and dogs were infringing on his property. he founded one of the first anti-virus software companies who has been sold. david: we see the name all the time on our computers. very interesting story. we'll keep you updated. thank you, robert. james bond's flick "skyfall" extending
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worldwide domination to north america. sandra: the latest move very in the bond franchise out sold leading actor daniel craig. what does this mean for imax? dennis kneale joins us. >> "skyfall" soars. the some critics say the best james bond film ever. looks like also will be by far the best ever box-office performer ever in the franchise 50 years and 23 films. "skyfall" hauling in almost $90 million over the weekend. by far the best opening weekend for any bond film. the flick clearing the half billion dollar mark worldwide. it opened everyseas 10 days before daning to come to the u.s. zai fall set to -- "skyfall" set to beat number one bond film, "casino royale", his first role in 2006. could beat all time leader in inflation adjusted terms,00 per ball. some critics are saying
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oscar buzz, say the film is taught, great cast, dramatic death after key character, special effects and way too many torso shots of daniel craig. sony is the main distributor of "skyfaal". doubtful even a bond blockbuster can offset ills in its electronics business. "skyfall" may have more beneficial effect on shares of imax, the giant screen company. that stocks popping up 2% in a dormant fraidy cat market. i saw "skyfall" saturday night at the imax theater, it was fantastic. imax said "skyfall" best opening ever on nonsummer film on imax screens. films like regal cinema, sin that mark. david: i don't want to see men's bodies at bond films i want to see women he is anyway. thank you, dennis. sandra: we have key numbers to watch for tomorrow's trades today, next.
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